GEORGETOWN, Guyana -The Guyana Revenue Authority (GRA) on Thursday morning withdrew all tax-related charges against prominent businessmen and gold dealers Nazar Mohamed and Azruddin Mohamed, a decision that legal analysts believe was motivated solely by the need to clear any domestic legal obstacles to their extradition to the United States, where the two men face serious federal indictments.
The withdrawal was announced before Chief Magistrate Faith McGusty at the Georgetown Magistrates’ Court, shortly after the Mohameds were arrested on an extradition warrant. The GRA’s prosecutor told the court that the agency would not be pursuing the case further. Although no reason was publicly stated, legal experts say the move ensures that Guyana’s domestic proceedings do not conflict with the extradition process initiated by Washington.
Under Article 4 of the 1931 U.S.–U.K. Extradition Treaty, which remains in effect for Guyana, extradition cannot proceed if the person sought is “still under trial” or “under examination or punishment” in the requested state. In such cases, extradition must be deferred until the conclusion of local proceedings and the full execution of any sentence. By discontinuing the GRA’s tax case, Guyana effectively removed that procedural impediment—clearing the way for the U.S. request to move forward without delay.
The GRA’s charges stemmed from an extensive audit of Mohamed’s Enterprise, which alleged that the company under-reported gold export income between 2019 and 2023. The Authority claimed that approximately G$34 billion in income had been understated, resulting in more than G$191 billion in unpaid liabilities, interest, and penalties. Both Nazar and Azruddin Mohamed were accused of filing false tax returns under Section 110(1)(a) of the Income Tax Act, Chapter 81:01.
Their arrest last week followed a formal extradition request from the Government of the United States, which the Attorney General’s Chambers in Georgetown confirmed had been officially received and is now being processed through the Ministry of Legal Affairs and the Director of Public Prosecutions in accordance with Guyana’s treaty obligations.
The extradition request relates to a sweeping U.S. grand jury indictment filed in October 2025 in the Southern District of Florida, charging the Mohameds with conspiracy, wire and mail fraud, money laundering, and gold smuggling. U.S. prosecutors allege that the duo exported more than 10,000 kilogrammes of gold without paying required duties or taxes—defrauding Guyana and the United States of roughly US $50 million.
Those charges build on June 2024 sanctions imposed by the U.S. Treasury’s Office of Foreign Assets Control (OFAC), which accused the family and their business of corruption and tax evasion within Guyana’s gold-export industry.
With the local tax case now abandoned, legal analysts say the decision underscores a deliberate alignment between Georgetown and Washington. “The timing and the specific legal effect of the withdrawal make it clear that the sole motivation was to remove any conflict under Article 4,” one senior legal source said. “Guyana is ensuring there is no barrier to the full extradition proceedings now underway.”
Attention now turns to the U.S. criminal proceedings, where both Nazar and Azruddin Mohamed face potentially decades-long prison sentences and asset forfeitures if convicted. For Guyana, the decision marks a pivotal moment in deepening cooperation with the United States on transnational financial crimes and in restoring confidence in the oversight of its gold-export sector.